PPF vs SSY: Which Scheme Is Better for Your Daughter's Future?
Should I invest in Sukanya Samriddhi Yojana (8.20%) or PPF (7.10%) for my daughter?
If you have a daughter under 10 years of age, Sukanya Samriddhi Yojana (SSY) is strictly superior to PPF because it offers a guaranteed 8.20% sovereign rate (1.10% higher than PPF) with identical 100% EEE tax-free status; choose PPF if investing for a son, for yourself, or if you need a flexible 15-year maturity with early loans.
Choose Public Provident Fund (PPF)
Parents wanting flexible 15-year maturity, accounts in any child or adult's name, and loan access between years 3 and 6.
Choose Sukanya Samriddhi Yojana (SSY)
Parents of a girl child (age 0-10) wanting the highest guaranteed sovereign interest rate in India (8.20%) 100% tax-free.
Interactive Return & Tax Comparison
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Public Provident Fund (PPF)
Sukanya Samriddhi Yojana (SSY)
Head-to-Head Criteria Comparison
Direct comparison across key financial dimensions, rules, and statutory boundaries.
| Criteria / Feature | Public Provident Fund (PPF) | Sukanya Samriddhi Yojana (SSY) |
|---|---|---|
Current Interest Rate | 7.10% p.a. | 8.20% p.a. (Highest in Small Savings) |
Eligibility | Any Indian citizen (Self, son, daughter, spouse) | Only Girl Child (Age 0 to 10 years at opening; max 2 girls) |
Tax Exemption Status | 100% EEE (Exempt-Exempt-Exempt) | 100% EEE (Exempt-Exempt-Exempt) |
Deposit Duration | Deposit for full 15 years | Deposit for 15 years; compounds for 21 years |
Account Maturity | 15 Years from account opening | 21 Years from opening (or marriage after 18) |
Annual Deposit Limits | Min ₹500, Max ₹1,50,000 per FY | Min ₹250, Max ₹1,50,000 per FY |
Partial Withdrawal | Allowed from 7th year (up to 50%) | Allowed after age 18 for higher education (up to 50%) |
Loan Facility | Available between Year 3 and Year 6 | Zero loan facility available |
Choose Public Provident Fund (PPF) If:
- •You are investing for a male child, for yourself, or for your spouse.
- •Your daughter is older than 10 years of age (ineligible for SSY).
- •You need your entire corpus back in 15 years rather than waiting 21 years.
- •You want the option to take low-interest loans against your balance.
Choose Sukanya Samriddhi Yojana (SSY) If:
- •You have a daughter aged below 10 years.
- •You want to maximize risk-free sovereign returns (8.20% vs 7.10%).
- •You are building a dedicated fund for your daughter's higher education at age 18 or marriage.
- •You want a deposit term where you only contribute for 15 years and let the balance earn compound interest for the remaining 6 years.
Real-Life Indian Decision Scenarios
Detailed case studies showing how different tax brackets, ages, and goals alter the optimal choice.
Scenario 1: ₹1.5 Lakh/Year for a 2-Year-Old Girl Child
Recommendation: Sukanya Samriddhi Yojana (SSY)Analysis: Depositing ₹1.5L/year for 15 years in SSY at 8.20% yields ~₹69.8 Lakh at 21 years, compared to ~₹54.5 Lakh in PPF. That is an extra ₹15.3 Lakh in 100% tax-free money purely from the 1.10% rate advantage.
Scenario 2: Having Both a Son and a Daughter
Recommendation: Open SSY for daughter (₹1.5L) + PPF for son (₹1.5L)Analysis: Manoj captures the highest 8.20% yield for his daughter via SSY and secures 7.10% EEE compounding for his son via PPF, creating balanced, dedicated tax-free education funds for both children.
Taxation, TDS & Statutory Rules
PPF Tax Structure
Investment Tax Benefit: Up to ₹1.5 Lakh under Section 80C.
Growth Tax Benefit: 100% Tax-Free annual compounding.
Maturity Tax Benefit: 100% Tax-Free under Section 10(11).
TDS Rules: Zero TDS.
Statutory Reference: Section 80C, Section 10(11).
SSY Tax Structure
Investment Tax Benefit: Up to ₹1.5 Lakh under Section 80C.
Growth Tax Benefit: 100% Tax-Free annual compounding.
Maturity Tax Benefit: 100% Tax-Free under Section 10(11A).
TDS Rules: Zero TDS.
Statutory Reference: Section 80C, Section 10(11A) (EEE Classification).
Liquidity & Lock-in Test
Public Provident Fund (PPF): 15 Years. Partial withdrawal from Year 7.
Sukanya Samriddhi Yojana (SSY): 21 Years (or marriage after 18). Premature closure only on death of girl child or medical treatment.
Safety & Guarantee Backing
Public Provident Fund (PPF): Sovereign (100% Government Guarantee) — Zero default risk (Govt of India).
Sukanya Samriddhi Yojana (SSY): Sovereign (100% Government Guarantee) — Zero default risk (Govt of India).
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